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NTC Approves PLDT-Digitel Merger, UNLI Promos will become permanent
he regulators finally approve on Wednesday the much-awaited deal between the Philippine Long Distance Telephone Co. also known as PLDT and the Digital Communications Philippines, Inc., the Digitel
The merging imposed conditions to ensure that there is no abuse of power and there is fair competition between dominant and nondominant carriers.
The deal involves PLDT’s acquisition of a majority interest in Digitel from JG Summit Holdings Inc. and other shareholders of Digitel in a landmark share-swap transaction valued at about P69.2 billion.
Orlando Vea, concurrent chief wireless advisor of Smart Communications Inc., is now the president of Digitel and its cellular unit Digitel Mobile Philippines Inc. (DMPI). He replaced James Go who was given a seat in the PLDT board.
PLDT said Wednesday that it has acquired majority ownership of a rival in a P69.2-billion share swap deal that will allow it to control about two-thirds of the country’s cellular telephone business.
Meanwhile, some progressive lawmakers are now planning to file a case to stop the merging of PLDT and Digitel, that reportedly gained the nod of a state regulator on Wednesday.
“We are studying to file a motion…considering that the SC issued a ruling declaring the ownership of PLDT unconstitutional due to the fact that the majority shares of the company is foreign-owned,” he said in a text message.
The SC earlier ordered the Securities and Exchange Commission (SEC) to investigate PLDT for a possible violation of the constitutional limit on foreign ownership of public utilities.
The SEC, however, has yet to take action pending the appeal of PLDT officials before the High Tribunal.
On the other hand, Senator Ramon “Bong” Revilla Jr., chair of the Senate committee on public services, however, said their investigation failed to find anything illegal on the deal considering that the two firms had separate franchises.
Globe shares closed P8 lower at P892 a piece on Wednesday, while PLDT’s stock price jumped P24 at P2,330 each. Shares in Digitel inched one centavo at P1.54 per share.
NTC Approves PLDT-Digitel Merger, UNLI Promos will become permanent
